AI Skills Surpass Traditional Engineering and IT in India: Key Findings
Synopsis
A recent report reveals that AI skills have become the most challenging for Indian employers to source, overtaking traditional engineering and IT capabilities. This trend highlights a significant talent shortage that is reshaping the job market.
Key Takeaways
AI skills are now the hardest skills for employers to find in India.
82% of employers are struggling to locate skilled talent.
There is a notable increase in demand for AI literacy and AI model development .
India ranks among the most talent-constrained markets globally.
Employers are adapting strategies to combat the talent shortage.
New Delhi, Feb 27 (NationPress) For the first time, AI skills have surpassed traditional engineering and IT capabilities, becoming the most challenging skills for employers to locate, according to a report released on Friday.
In 2026, over 82% of employers in India reported facing difficulties in finding skilled talent, as revealed by the report from ManpowerGroup.
The report highlights that AI literacy and AI model development are among the most sought-after skills, indicating an increase in talent pressure compared to the previous year and remaining significantly above the global average of 72%.
“The hardest skills to source globally include AI literacy, AI model development, engineering, sales and marketing, and manufacturing & production, emphasizing the universal scarcity of AI capabilities,” the report states.
India ranks among the most talent-constrained markets worldwide, alongside countries such as Slovakia (87%), Greece (84%), and Japan (84%).
The research, which surveyed over 39,000 employers across 41 countries, showed a slight improvement in global hiring at 72% compared to 74% in 2025, yet competition for AI skills remains fierce.
Additionally, the report points out a growing structural skill mismatch as organizations struggle to acquire both advanced technical skills and essential soft skills.
“India’s talent shortage of 82% indicates a structural transformation in the labor market rather than a cyclical one,” stated Sandeep Gulati, Managing Director, India and Middle East, ManpowerGroup India.
Employers' strategies varied, with approximately 37% focusing on upskilling and reskilling, 35% seeking new talent pools, and 26% offering flexible schedules, while 25% provided location flexibility, according to the report.
The talent challenge affects various industries, particularly automotive (94%), information & finance or insurance (85%), and professional, scientific, and technical services, as well as construction and real estate or tech and IT services (84%).
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Point of View
Where the demand for AI skills is outstripping supply. This structural shift underscores the urgency for employers to adapt their hiring strategies and invest in talent development to stay competitive.
NationPress
20 Jun 2026
Frequently Asked Questions
Why are AI skills becoming difficult to find?
AI skills have surpassed traditional engineering and IT capabilities, leading to increased competition among employers in sourcing qualified talent.
What percentage of employers in India are struggling to find skilled talent?
In 2026, over 82% of employers in India reported difficulties in finding skilled talent.
Which industries are most affected by the talent shortage?
Industries such as automotive, information & finance or insurance, and professional, scientific, and technical services are facing the greatest challenges.
What does the report suggest about the future of the labor market in India?
The report indicates a structural transformation in the labor market, driven by a significant shortage of AI skills.
What strategies are employers adopting to address the talent shortage?
Employers are focusing on upskilling and reskilling, targeting new talent pools, and offering flexible work arrangements.
